Welcome to the 7(a) Connect Call

Transcription

1 Welcome to the 7(a) Connect Call During this call we will provide updates, training tips and hot topics on the Office of Capital Access There will be time allotted for questions and answers. Office of Capital Access Welcome and Updates Bill Manger Office of Economic Opportunity Manny Hidalgo Office of the General Counsel - Stephen Olear Office of Financial Assistance Robert Carpenter Secondary Market - John Wade Q & A

2 7(a) Connect Call Wednesday, October 26 th, 2017

3 Bill Manger Associate Administrator Office of Capital Access 3

4 FY2017 Activity As of 9/30/

5 FY2017 Activity As of 9/30/

6 FY2017 Activity As of 9/30/

7 Manuel Manny Hidalgo Director, Office of Economic Opportunity 7

8 FY2017 Activity As of 9/30/

9 FY2017 Activity As of 9/30/

10 Stephen J. Olear Chief Franchise Counsel Office of the General Counsel Financial Law and Lender Oversight 10

11 Franchise SBA Information Notice For loans processed through December 31, 2017: SBA Lenders must continue to follow the franchise review procedures set forth in SOP (I) and SBA Policy Notice , and will now contact to obtain an SBA Franchise Identifier Code 11

12 Franchise Coming Soon! Annual Certification from Franchisor Submission of Documentation to SBA Post Approval Documentation SBA Franchise Directory New Process starting January 1 st : Lenders and CDC s will no longer have to review Franchise or other brand documentation for affiliation or eligibility 12

13 Robert Carpenter Acting 7a Chief Office of Financial Assistance 13

14 NEW SOP SBA Information Notice Click here for new SOP (J) Please Note: No track changes will be posted. Due to the amount of edits, it would not be useful. 14

15 SOP (J) Subpart B Chapter 2 Provided guidance on affiliation by management agreements Revised Franchise Procedures 912 Procedures updated to reflect Information Notice Consumer and marketing cooperatives now eligible Revised procedures on Prurient material Added EPC Partner Buyout Clarified use of proceeds for farm enterprises Updated use of proceeds with Export Express 15

16 SOP (J) Subpart B Chapter 3 Now requires SBA Express LOC to include a term-out period Revised timing of guaranty fee payments and refunds for short term loans Simplified the guidance on the only fees Lenders, Agents, and Lender Service Providers (LSP s )may charge 16

17 SOP (J) Subpart B Chapter 4 Added minimum equity requirements for certain 7(a) loans Revised guidelines of change of ownership and equity injections (seller debt) Updated EWCP credit underwriting and collateral standards Provided direction loans processed using delegated authority, may require a personal guaranty, regardless of ownership interest Updated environmental policy to reflect current federal requirements Change in personal guaranty requirements 17

18 SOP (J) Subpart B Chapter 5 Relocated Insurance Requirements to Chapter 4 Relocated Assignment of Lease & Landlord s Waiver to Chapter 4 Chapter 6 Reorganized for Clarity Chapter 7 Expanded the list of actions that do not require prior approval Added guidance on credit reporting agencies 18

19 SOP (J) Subpart B Chapter 8 Added guidance on selling loans in the Secondary Market Added the process for portfolio transfers and loan participations Guidance on obtaining SBA s prior written consent to secured credit and SBA securitization transactions 19

20 SBA s New Website Our new website is still undergoing construction We thank you for your patience 20

21 Updated Forms Mandatory Use Starts January 1, 2018 (Can be used now) Borrower Information Form 1920-Lenders Application for Loan Guaranty Please note: 1919 and 1920 will be amended to include SOP (J) updates 21

22 4506-T SBA Information Notice SBA Seal has been removed Expedited Processing through IVES Be sure to send request to correct fax # New IRS Contacts: Roxanne Jones at (801) Roxanne.Jones@irs.gov or Mary Ray at (816) , Mary.R.Ray@irs.gov 22

23 Express Bridge Loans $25,000 Unsecured Disaster Bridge Loan with expedited processing from existing Express lenders only. Lender must obtain: 1. SBA credit score of 130 issued by ETRAN 2. Personal Credit Report consistent w/ lenders policy T for verification of filing Click here for the Express Bridge Loan Pilot Federal Register Notice Info Notice and Guide coming soon! 23

24 Upcoming Listening Webinar In an effort to assess and enhance our relationship with our key stakeholders, the SBA is holding a public meetings in the fall. Please join us Tuesday, November 7 th from 11:00-12:00pm EST register at: and Log in 10 minutes prior to the event at: Step 1: Step 2: Instructions for connecting to conference audio will then be presented on your computer If you have any questions, please feel free to contact SBA directly at Reimagine@sba.gov 24

25 Questions 25